Reportedly, Japanese brewer Suntory Holdings would hold off a further asset in China owing to uncertainties owing to the trade war, stated its CEO Takeshi Niinami. During the WEF (World Economic Forum) in Dalian, China, Niinami told CNBC, “I will rather stay in Southeast Asia now.” The U.S. President Donald Trump and China’s President Xi Jinping settled to return to the negotiating table following tariff talks were stopped for months. The trade battle amid the world’s two biggest economies has pressured to disrupt the economy globally. Both parties agreed not to charge any new taxes against each other’s goods for now. “For the time being, we will like to stop investment in China. So, treaty means postponement,” he said.
Although Suntory is still functioning in China, Niinami reported the company requires further lucidity on the U.S.-China trade spat before further investment conclusions can be made. Niinami said, “I wonder if we must endorse producing goods in China or still keep manufacturing in Japan and export goods to China.” Such apprehensions are an indication of what businesses are thinking regarding the U.S. and China tariff clash, causing a domino impact of disturbances in the supply chain.
On a similar note, recently, it was stated that the U.S.-China treaty is just an “eye of the storm” in the trade battle. The trade truce struck amid China and the U.S. at the G20 summit in Japan is just “the eye of the storm” in their current dispute, as per to economists at BAML (Bank of America Merrill Lynch), who presented a mid-year upgradation on their financial outlook for 2019 and beyond. That viewpoint was in total gloomy, featuring a down revision to the bank’s universal growth forecast and the opinion that the trade dispute amid US-China is “unlikely to finish anytime soon,” as per to Ethan Harris, BAML’s Head of Global Economics.